Close of business Monday November, 7, 2011, millions of options and futures holders will be forced to deposit billions in additional capital to the CME just so they are not found to be margin deficient, and thus receive a margin call. (Calling In The Fraudulent Naked Short Selling) Naked Short Selling Brought Silver Prices Down In September.

Update: Based on unofficial statements by the CME, it appears that the exchange has gone the way of inviting more risk by lowering Initial to meet existing Maintenance margin across the board.

Most likely this will increase speculation, driving the price of commodities higher.

CME Group is the world’s leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). Further information on each exchange’s rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX <–METALS aka; SILVER.

Now don’t forget that in 1999, Bill Clinton repealed The Glass Steagall Act. The Glass Steagall Act prevented Banks and the likes from gambling with ‘derivatives’ against commodities. They have way too much of our money, which they are using to turn our economy into nothing more than a Casino for themselves, and against The United States Citizen. Yes the culprit behind this IS Bill Clinton.

Which means that by close of business Monday November, 7, 2011, millions of options and futures holders will be forced to deposit billions in additional capital to the CME just so they are not found to be margin deficient, and thus receive a margin call. (Calling In The Fraudulent Naked Short Selling) Naked Short Selling Brought Silver Prices Down In September.

We will likely only know for certain on Monday. We suppose the proposed explanation will be to minimize margin exposure for onboarded MF positions. Of course, that this is very much counterintuitive at a time when risk is spiking and vol readings per SPAN are soaring, and instead is inviting even more risk, is apparently irrelevant to the exchange.

The most important news announcement of the day was not anything to came out of Cannes (as nothing did), nor from Greece (the merry go round farce there continues unabated).

No, it was a brief paragraph distributed by the CME long after everyone had gone home, and was already on their 3rd drink.

It is critical, because not only is this announcement a direct consequence of what happened with MF Global(Obama’s Corzine Was CEO Of Bankrupt MF Global) several days ago, but because also it confirms one of our biggest concerns: systemic liquidity is non-existanet aka; too much ‘derivative paper’. Derivative paper is whats used to indebt a nation.

We confirmed interbank liquidity in Europe was at an all time low earlier today, and can only assume the same is true for US banks. But what is very disturbing is that this is just as true at the exchange level, where it appears the aftermath of the MF collapse is just now being felt. What exactly was the announcement?

Unless we are completely reading it incorrectly, it is nothing short of a margin call for tens if not hundreds of billions worth of product.

Because as of close of business on November 4, today, the CME just made the maintenance margin, traditionally about 26% lower than the initial margin for specs, equal. For everything.

Which means that by close of business Monday, millions of options and futures holders will be forced to deposit billions in additional capital to the CME just so they are not found to be margin deficient, and thus receive a margin call. Naturally, since it is very unlikely that this incremental amount of liquidity can be easily procured in one business day, we anticipate the issuance of hundreds of thousands of margin calls (calling in the shorts) Monday, followed by forced liquidations of margin accounts across America… and the world.

Just like when Lehman blew up, it took 5 days for Money Markets to break. Is this unprecedented elimination in the distinction between initial and maintenance margin the post-MF equivalent of the first domino to fall this time around?

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The United States Supreme Court held unconstitutional hundreds of laws enacted by Congress over the course of five decades that included a legislative veto of executive actions in INS v. Chada, 462 U.S. 919 (1982).

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“The way to have good and safe government is not to trust it all to one, but to divide it among the many, distributing to every one exactly the functions he is competent to.

Let the national government be entrusted with the defense of the nation, and its foreign and federal relations; the State governments with the civil rights, law, police, and administration of what concerns the State generally; the counties with the local concerns of the counties, and each ward direct the interests within itself.

It is by dividing and subdividing these republics from the great national one down through all its subordinations, until it ends in the administration of every man’s farm by himself; by placing under every one what his own eye may superintend, that all will be done for the best.

What has destroyed liberty and the rights of man in every government which has ever existed under the sun? The generalizing and concentrating all cares and powers into one body.”